The Rise of Premium Products in Indian Festive Sales
In the midst of the grand Indian festive sale season, mobile phones continue to dominate the market, but fashion is also gaining traction. What’s particularly noteworthy is the surge in the sale of premium products in both categories, highlighting the evolving preferences of Indian shoppers.
During the ongoing Amazon Great Indian Festival 2023, for instance, the platform’s ‘Prime’ members purchased more than 75 smartphones per second in the first hour of the sale. In the initial 48 hours, four out of every five smartphones sold were 5G-ready. Premium smartphones priced above Rs 30,000 saw a remarkable 3x growth compared to the previous year, primarily driven by attractive affordability options like no-cost EMI and enticing exchange offers.
This festive season provides a diverse selection of 5G smartphones, ranging from entry-level devices to feature-rich models. Premium smartphones are particularly sought after for their advanced features such as high-end processors, fast-charging batteries, and AMOLED displays. Alongside the surge in demand for tablets, laptops also witnessed over a 40% increase compared to last year.
The most preferred smartphone brands during the festival sale have been OnePlus, Samsung, and Apple. Customers purchased more than 100 OnePlus smartphones every minute in the first 48 hours, representing a 2.5x increase from the previous year. Samsung experienced a 3x growth in demand for their flagship Galaxy S Series compared to last year.
Flipkart, another popular e-commerce company, also observed a significant rise in premiumization across electronics and mobile phones. The sale of premium smartphones increased by 1.7x compared to the previous year’s Big Billion Days sale. This year’s sale took place from October 8 to 15.
According to Counterpoint Research, over 1.5 million units of iPhones were sold in the first week of the festive season, driving a year-on-year market growth of 25% in value. The sales growth encompassed various iPhone models, including the iPhone 14, iPhone 13, and iPhone 12. Samsung and Xiaomi also contributed to the growth in both value and volume during the first week.
The surge in smartphone sales across different segments can be attributed to substantial price discounts, attractive trade-in values, and appealing bundle offers. Counterpoint Research reported that premium segment sales nearly doubled across online channels during the festive season sale. On Flipkart, the premium segment witnessed an almost 50% year-on-year growth, driven by the iPhone 14 and Samsung Galaxy S21 FE. On Amazon, the segment experienced an astounding 200% year-on-year growth, fueled by the iPhone 13 and Galaxy S23 FE.
The Ascent of Premium Fashion Products
In addition to mobile phones, fashion products in the Rs 5,000+ range also enjoyed a significant surge in demand. Footwear, watches, and accessories experienced an 8x growth compared to the period leading up to the festivities on Flipkart. Tier-2 regions displayed an increased preference for branded clothing, with a 4x growth in the premium portfolio across makeup, fragrance, toys, and babycare.
Amazon witnessed more than half of its fashion sales coming from tier-2 and tier-3 cities for premium brands. The platform also observed a 2x growth in fashion jewelry, 3.5x growth in beauty essentials, 10x growth in sarees under Rs 199, 6x growth in polo T-shirts under Rs 299, and a remarkable 6x growth in sports shoes.
Saurabh Srivastava, vice-president of Amazon Fashion India, remarked that while electronics often witness a surge in sales during this period, fashion and beauty categories also experience significant growth as people purchase new clothes, jewelry, and other related items.
On Flipkart, several new on-app experiences contributed to a 4x increase in engagement compared to the pre-festive period. Features like Flippi (a Chat GPT-powered shopping assistant), Vibes (video-led browsing experience), and SPOYL (Gen-Z fashion experience) all received positive responses from consumers.
Impressive Growth in Festive Season Sales
The festive season sales conducted by e-commerce platforms achieved a remarkable gross merchandise value (GMV) of Rs 47,000 crore, growing at a rate of 19% compared to week 1 of the festive season sale in 2022, according to a recent report by Redseer Consultants. High average selling price (asp) items like mobiles, electronics, and large appliances played a significant role, contributing to over 67% of the total sales. The trend of premiumization emerged as a key theme within these categories.
Editor Notes: Celebrating Indian Shoppers’ Growing Preferences
It is fascinating to witness the evolving tastes of Indian shoppers during the festive sale season. The surge in the sale of premium products, both in mobile phones and fashion, demonstrates the desired luxury and high-end features that consumers seek. The widespread adoption of no-cost EMI options, attractive exchange offers, and substantial discounts have further fueled the demand for premium items.
It is essential for e-commerce platforms to continue catering to these preferences by offering a diverse range of premium products and ensuring a seamless shopping experience. As the festive sale season unfolds, Indian shoppers can indulge in their desires for the latest smartphones and fashionable apparel, making their celebrations even grander.
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